AI-Powered Payments and Cryptocurrency Adoption: Essential Forces Identified in a Recent Study
Crypto's Leap Forward:
As reported by Reown, the on-chain ecosystem is evolving, with users expanding their involvement beyond mere trading. Many predict that payments and artificial intelligence (AI) will spearhead this evolution, driving the wider adoption of on-chain technology.
Despite the optimism surrounding crypto's future, obstacles such as fees, security, and interoperability persist.
Embracing the Future
Reown shared its report, "The State of Onchain UX," with BeInCrypto. The report is based on a survey of 1,038 active crypto users in the US and UK, conducted between February 19 and February 26, 2025.
The findings reveal that 37% of users anticipate payments, including stablecoins and remittances, as the driving force behind mass adoption. Remarkably, the report also highlights a surge in stablecoin usage, rising from 20% last year to 37% this year.
Crypto wallet usage has also gained momentum. Reown observed that in 2024, the average number of wallets in all regions increased by 1.27x. Furthermore, 54% of users now transact with crypto for payments, suggesting growing real-world use.
"For crypto payments to reach the mainstream, they must match the ease of traditional fintech experiences. Users should be able to transact effortlessly without having to comprehend blockchain mechanics," commented Mirna Barca, Payments Product Manager at Reown.
AI is seen as another vital catalyst for adoption, with 35% of users identifying it as a major growth factor. Despite AI's potential, there is a degree of skepticism about blockchain's role in AI development.
Only 29% believe the two technologies will complement each other, while merely 18% see crypto aiding AI's progress.
"Despite trading holding the top spot in terms of user activity today, payments and AI are the themes that users believe will play much larger roles in the future, indicating that the leading services users access today do not reflect what they believe will drive long-term value," the report reads.
In addition, regulatory advancements and tokenization are seen as the next key factors that could facilitate mass adoption, with 26% of users identifying each as a crucial element. Crypto regulation has taken center stage under President Donald Trump's administration.
Shortly after Trump took office, the SEC established a crypto task force to create a regulatory framework for digital assets. Notably, new SEC chairman Paul Atkins has also underscored the importance of crypto regulation, deeming it a priority.
This focus has fueled industry optimism, and user data reinforces this. 86% of users believe regulatory clarity will drive mainstream adoption, while 14% believe it will stifle innovation.
"We're on the brink of regulatory uncertainty in the US. In Europe, MiCA is shaping up, but a lack of precedent has kept innovators guessing, just like in the US. The industry is on the cusp of regulatory clarity, but we're not quite there yet," Marco Santori, Director of WalletConnect Foundation, remarked.
Hurdles Ahead
Before mainstream adoption can occur, several areas require improvement. Better security lands at the top of the list, with 33% of users considering it vital for wider adoption. In addition, privacy and data protection standards are crucial for 25% of users.
Confidence in on-chain security has grown significantly, with 69% of users feeling secure, up from 50.5% last year. However, phishing attacks have risen, impacting 21% of users (up from 14.4%).
"Phishing attacks are up, and that's a problem. But security UX still isn't where it needs to be. If we can make transaction signing clearer and build in fraud protection, we can help users feel more in control," commented Reown's CEO, Jess Houlgrave.
Notably, 44% of users now use multiple wallets for security reasons, up from 32.8% in 2024. Moreover, 18% cite security concerns, such as hacks and scams, as a barrier to engaging on-chain.
High fees also deter 39% of users from deeper engagement on-chain, with 30% believing lower fees would encourage interest.
Interoperability is another crucial concern, with 47% considering it very important, and 18% citing a lack of interoperability as a barrier. Despite this, only 14% list it as one of the core issues that need to be resolved.
In conclusion, the report underscores the need for developers to focus on real-world use cases, ensuring seamless, secure, and cost-effective user experiences. It also highlights a disconnect between user expectations, centered on payments and social apps, and current behavior, which remains heavily trading-focused.
"Understanding and addressing this dynamic will be critical to achieving true mainstream adoption," the report asserts. With 67% of survey participants optimistic about crypto's development, the on-chain ecosystem is ready for growth. However, addressing security, fees, and interoperability will be essential to unlock its full potential and driving the next wave of mainstream engagement.
- Reown's report, "The State of Onchain UX," suggests that payments, including stablecoins and remittances, will be the driving force behind mass crypto adoption, with 37% of users anticipating this.
- The survey of 1,038 active crypto users in the US and UK reveals a surge in stablecoin usage, rising from 20% last year to 37% this year.
- Crypto wallet usage has also gained momentum, with the average number of wallets in all regions increasing by 1.27x in 2024 and 54% of users now transacting with crypto for payments.
- Regulatory advancements and tokenization are seen as the next key factors that could facilitate mass crypto adoption, with 26% of users identifying each as a crucial element.
- Despite trading holding the top spot in terms of user activity today, payments and AI are the themes that users believe will play much larger roles in the future.
- Marco Santori, Director of WalletConnect Foundation, remarked that the industry is on the cusp of regulatory clarity, but we're not quite there yet.
- Better security lands at the top of the list of areas requiring improvement for wider crypto adoption, with 33% of users considering it vital.
- High fees and a lack of interoperability are other concerns deterring deeper engagement in the on-chain ecosystem, with 39% and 47% of users citing these issues, respectively.
